Under what conditions is the General Release executed for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on |
|---|
| by |
| ("Franchisee"), |
| ("Guarantors"), |
| ("Transferee") as a condition of (1) the transfer of the Franchise Agreement |
| dated [month] [day], |
| [year] |
| between |
| BODY20 |
| Franchisor |
| LLC |
| ("Franchisor") |
| and |
| Franchisee |
| ("Franchise |
| Agreement"); or (2) the execution of a successor Franchise Agreement by Franchisee and |
| Franchisor. (If this Release is executed under the conditions set forth in (2) above, all references |
| in this Release to "Transferee" should be ignored.) |
Discretionary Extension. We may, in our sole discretion, extend any Signing Deadline or any Opening Deadline, which we may condition on your payment of an Extension Fee and execution of a general release.
The "Extension Fee" for each Studio will be $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such Studio is extended.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a General Release is required under specific conditions related to the transfer of the franchise agreement or the execution of a successor agreement. This release is executed by the franchisee, any guarantors, and any transferee involved in the transaction.
Specifically, the General Release is a condition precedent to either (1) the transfer of the existing Franchise Agreement or (2) the execution of a new Franchise Agreement between the franchisee and Body20. If the release is related to the execution of a successor agreement, any references to a "Transferee" within the release document are disregarded.
Additionally, Body20 may require the execution of a general release if a franchisee requests an extension to either the Signing Deadline or the Opening Deadline for a studio. In this case, Body20 has the discretion to condition the extension on the franchisee's execution of a general release, in addition to the payment of an Extension Fee of $2,500 per month (or portion thereof) for each studio affected by the extension.